Major economic impacts coming to Franklin County
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By Timothy McQuiston, Vermont Business Magazine
Franklin County’s economy has traditionally revolved around manufacturing, tourism, and agriculture, with dairy cows, cornfields, and maple sap lines defining its landscape. Major towns like St Albans, Swanton, and Enosburg host manufacturing plants, and Canadian flags and fleur-de-lis welcome visitors from the north. Immigration offices have also contributed to the local economy.
However, recent developments in the national and international dairy industry, coupled with ongoing tariff battles between the US and Canada, have significantly disrupted Franklin County's economy.
In late August, US-Canada trade negotiations collapsed, leading to the US imposing a 50% tariff on Canadian goods and Canada retaliating with a similar tariff on US goods. The Ontario premier even suggested cutting off energy supplies to the US, with Quebec being Vermont's primary electricity supplier.
These changes are expected to greatly affect the dairy industry, particularly in Franklin County, which boasts 89 dairies—the highest number in Vermont and New England combined.
"There are a number of other individuals who are much better versed in what the future will hold for the dairy industry," noted Tim Smith, executive director of the Franklin County Industrial Development Corp. He further pointed out that Vermont's lack of investment in the dairy sector compared to neighboring states like New York and Maine could make it challenging for Vermont to keep up.
The Dairy Farmers of America co-op plant in St Albans is scheduled to close due to pending litigation and negotiations with the Teamsters union.
According to the Vermont Dairy Promotion Council, Franklin County's reliance on traditional industries, coupled with its significant dairy production, makes it particularly vulnerable to these economic shifts.
Meanwhile, Chobani, which opened its first US plant in New York in 2005, is expanding its operations with a $1.2 billion, 1.4 million-square-foot facility in Rome, New York, expected to produce over one billion pounds of high-end dairy products annually. This expansion will create over 1,000 jobs and nearly double Chobani's workforce in New York State.
Empire State Development offered Chobani up to $73 million in performance-based tax credits to support these new jobs, highlighting New York's position as the leading dairy producer in the nation.